Brady and Associates, LLC

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American Recovery and Reinvestment Act of 2009  Provisions for Businesses and Self Employed Individuals

 

The law enacted February 17, 2009 makes over 300 changes to the Internal Revenue Code.   Some of these carry into future years and some are for 2009 0nly.  Included are the major provisions of the act and how they will impact your business.

Provisions for Businesses and Self-Employed

· Estimated tax payments

· Fringe Benefits—Employer, provided transportation benefits

· NOL Carry back

· Section 179,  Bonus and Special Depreciation

· Work Opportunity Tax Credit (WOTC)

 

Estimated Taxes

The new law decreases the required estimated tax payments for individuals whose incomes primarily come from a small business in 2009.  Quarterly estimated tax payments can be computed based on 90% rather than 100% of their 2008 returns.  In order to qualify for this more than 50% of 2008 income must be from a qualified small business.

Fringe Benefits—Employer, provided transportation benefits

The monthly exclusion limitation for employer transit and vanpooling benefits is increased so it’s the same for employer provided parking, $230 per month.

Section 179, Bonus and Special Depreciation

The law extends the first year 50% bonus depreciation through 12/31/2009 and also extends the bonus depreciation through 2010 for an additional year for property having a recovery period of 10 years or more for transportation property, used to transport people or property.

Section 179 expense increases for 2009 to $250,000 and the qualifying property limit is $800,000.

NOL Carry Back

New NOL carry back law allows  business to carry back an NOL for 3, 4, or 5 years.  This only applies to NOL’s.